REG - Balfour Beatty PLC - Group Chief Executive succession

Balfour BeattyAnnouncement

05/03/2025 07:15

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RNS Number : 3632Z  Balfour Beatty PLC  05 March 2025

News Release

 

05 March 2025

 

Group Chief Executive succession

 

Balfour Beatty plc, the international infrastructure group, today announces
that Leo Quinn will step down from the Board later this year, after over 10
years as Group Chief Executive.

 

Following an extensive international search, Philip Hoare, Chief Operating
Officer, AtkinsRéalis, has been chosen by the Board to succeed him and will
join the Group in September of this year.

 

Philip, a civil engineer, has built his 30-year career in the industry at
AtkinsRéalis Group Inc., a 39,000 strong global engineering services and
nuclear enterprise with annual revenues of CAD $9.4 billion (£5.1 billion)
and listed on the Toronto Stock Exchange. With his extensive leadership
experience in the engineering, project management and construction sectors, he
has been fundamental to the growth and performance of the company, first as
CEO of Atkins in the UK and Europe, and then as President of the global
Engineering Services business.

 

In January 2024, he was appointed Chief Operating Officer of the transformed
group to drive growth and performance across the company and lead a diverse
portfolio of significant international projects.

 

Following Philip's appointment to the Board in September, Leo will continue in
an advisory capacity for several months to ensure a seamless transition.

 

Charles Allen, Lord Allen of Kensington, CBE, Balfour Beatty Group Chair,
said:

 

"I am delighted Philip will join the Group as Chief Executive. The selection
process made clear that his depth of industry knowledge and his experience in
delivering a profitable growth strategy across multiple geographies make him
the ideal person to drive forward the Group's success in our chosen markets.

 

"On behalf of the Board, I pay tribute to Leo for his exceptional and
inspirational leadership of both Balfour Beatty and the industry over the last
decade.

 

"Leo has transformed Balfour Beatty into a strong, resilient Group, setting it
firmly on a trajectory of profitable growth. This is underpinned by a culture
across its workforce which is committed to expertise, discipline and
excellence, resulting in a trusted reputation for delivering value for all
stakeholders."

 

During Leo's tenure, Balfour Beatty has strengthened its balance sheet from
average net debt of £371 million in 2014 to £735 million average net cash*
in 2024. Given this strong cash performance, between 2021 and 2024, £755
million of capital has been returned to shareholders through dividends and
share buybacks. Since October 2014, when Leo's appointment was announced,
Balfour Beatty has delivered Total Shareholder Returns (TSR) of 261%, more
than three times the average TSR of the FTSE250 index.

 

Leo Quinn, Balfour Beatty Group Chief Executive said:

 

"It has been my great privilege to lead Balfour Beatty through over ten years
of transformation into a focused and leading international infrastructure
Group. I believe that our industry-leading safety performance, financial
strength and strategic position in growth markets come from directly investing
in outstanding people to ensure what is now an enviable 115-year heritage."

 

Philip Hoare, incoming Balfour Beatty Group Chief Executive said:

 

"Balfour Beatty is a cornerstone of the construction and infrastructure
industry with an exciting future. I will be incredibly proud to lead the Group
in continuing to deliver exceptional infrastructure and services for its
customers and communities, fantastic meaningful careers for colleagues and
long-term value for its shareholders."

 

This announcement contains all the information required by UKLR 6.4.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation. The person responsible for arranging the release
of this announcement on behalf of Balfour Beatty is Tracey Wood, Group General
Counsel and Company Secretary.

 

*Half-year 2024 average monthly net cash

 

 

ENDS

 

Enquiries to:

Louise McCulloch

Group Communications and Corporate Affairs Director

+44 (0)7814 693057

louise.mcculloch@balfourbeatty.com (mailto:louise.mcculloch@balfourbeatty.com)

 

Notes to editors:

·    Supplementary information relating to the remuneration arrangements
for Leo Quinn is set out below.

Leo Quinn will receive his contractual entitlement of 12 months' notice,
starting at the date of this announcement, 5 March 2025. Balfour Beatty will
continue to pay Leo up to the end of his employment in accordance with his
contract and the Company's Directors' Remuneration Policy.

 

He will be entitled to receive a normal annual bonus in respect of 2024,
subject to performance assessment, and also a pro-rated annual bonus in
respect of his active service for 2025. Reflecting his long service and
contribution to the business, Leo is a 'Good Leaver' for the purposes of
Balfour Beatty's share plans. Outstanding deferred bonus share awards will
vest on cessation of employment in accordance with our Remuneration Policy.
Outstanding Performance Share Plan awards, subject to pro-rating for time and
to satisfaction of the applicable performance targets, vest on their normal
vesting dates. The post holding period relating to Leo's Performance Share
Plan awards, will continue to apply as per the plan rules.

 

Full details of Leo Quinn's departure terms will be disclosed on the Company's
website in due course in compliance with Section 430(2B) of the Companies Act
2006 and in the Directors' Remuneration Report within the Company's 2024
Annual Report and Accounts, as appropriate.

 

·    Supplementary information relating to the package on appointment for
Philip Hoare is set out below.

In his role as Group Chief Executive, Philip Hoare will receive a salary of
£840,000 and a pension allowance of 7% of salary (aligned with the wider
workforce), along with other benefits offered to the wider workforce. He will
also be eligible to participate in the Annual Incentive Plan ("AIP"), Deferred
Bonus Plan ("DBP") and Performance Share Plan ("PSP") under the current Policy
approved by shareholders in 2023. This includes an annual bonus opportunity
with a maximum of 150% salary and a maximum long-term incentive grant of 200%
of salary.

 

Philip will also receive awards to partially (not fully) compensate for
remuneration he is forfeiting on leaving his previous employer. These will
remain subject to performance conditions where appropriate and will not exceed
the value of the forfeited awards. Buy-out awards in connection with forfeited
share awards will be in Balfour Beatty shares. The vesting timeline of the
replacement awards will be the same as those which apply to the forfeited
awards. Details will be provided in the Directors' Remuneration Report within
the Company's 2024 Annual Report and Accounts.

 

·      Balfour Beatty (http://www.balfourbeatty.com/)  is a leading
international infrastructure group with 26,000 employees driving the delivery
of powerful new solutions, shaping thinking, creating skylines and inspiring a
new generation of talent to be the change-makers of tomorrow.

We finance, develop, build, maintain and operate the increasingly complex and
critical infrastructure that supports national economies and deliver projects
at the heart of local communities.

 

Over the last 115 years we have created iconic buildings and infrastructure
all over the world. Currently, we are working to deliver Hinkley Point C, the
first UK nuclear power station in a generation; constructing the world-class
arts and cultural facility, the Lyric Theatre, in Hong Kong; and designing,
building, financing, operating and maintaining the Automated People Mover
superstructure at one of the busiest airports in the world, Los Angeles
International Airport

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